A compony reported a net income of $340 million for the most recent fiscal year. The firm had depreciation expenses of $115 million and capital expenditures of $145 million. Although it had no interest expense, the firm did have an increase in net working capital of $30 million. What is the company's free cash flow? a. $630 million b. $340 million c. $280 million d. $50 million

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 9P: Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current...
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A compony reported a net income of $340 million for the most recent
fiscal year. The firm had depreciation expenses of $115 million and
capital expenditures of $145 million. Although it had no interest
expense, the firm did have an increase in net working capital of $30
million.
What is the company's free cash flow?
a. $630 million
b. $340 million
c. $280 million
d. $50 million
Transcribed Image Text:A compony reported a net income of $340 million for the most recent fiscal year. The firm had depreciation expenses of $115 million and capital expenditures of $145 million. Although it had no interest expense, the firm did have an increase in net working capital of $30 million. What is the company's free cash flow? a. $630 million b. $340 million c. $280 million d. $50 million
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